Calif. AG Seeks To Force Moody's To Answer Subpoena

Law360, New York (April 19, 2010, 2:43 PM EDT) -- California Attorney General Jerry Brown said Monday that his office filed a petition seeking to force financial products rating company Moody's Investors Service Inc. to "explain why it gave its highest ratings to 'risky and toxic'" mortgage-backed securities that cost investors and taxpayers billions.

Brown's petition, in the Los Angeles County Superior Court, says Moody's has refused to comply with the state's subpoena for seven months. It seeks a court order forcing Moody's to answer a slew of questions.

"The need for court action to enforce...
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